New User   Login      
Tax Management India .com TMI - Tax Management India. Com
Extracts
Home List
← Previous Next →

2016 (5) TMI 614 - ITAT MUMBAI

2016 (5) TMI 614 - ITAT MUMBAI - TMI - Penalty under section 271(1)(c) - book profit under section 115JB of the Act as the income declared and tax levied under section 115JB of the Act is more than the income declared under the normal provisions - Held that:- As evident that the disallowances on the basis of which penalty under section 271(1)(c) was imposed related to determination of income under the normal provisions of the Act. Therefore, they have no relevance at all as far as computation of .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ns of the Act is less than the tax payable on the book profit under section 115JB of the Act, then penalty under section 271(1)(c) is not attracted with reference to additions / disallowance made under normal provisions. - Decided in favour of assessee. - ITA No. 3003/Mum./2014 - Dated:- 7-1-2016 - Shri Saktijit Dey, Judicial Member And Shri N. K. Billaiya, Accountant Member For the Petitioner : Shri Rajeev Waglay For the Respondent : Shri Shrikant Namdeo ORDER Per Saktijit Dey, J. M. Instant ap .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

f 1,39,96,811 under section 115JB of the Act. While completing assessment under section 143(3), vide order dated 12th October 2010, the Assessing Officer made certain disallowance under the normal provisions, however, since the tax due on book profit is more than tax due on income declared under normal provisions, the Assessing Officer ultimately completed the assessment under section 115JB. The disallowance made under the normal provisions was not challenged by the assessee. On the basis of dis .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ned Counsel for the assessee submitted, as the disallowances on the basis of which penalty was imposed under section 271(1)(c) had no relevance to income determined under section 115JB, penalty under section 271(1)(c) cannot be imposed. For such proposition, he relied upon the following decisions:- i) CIT v/s Nalwa Sons Investments Ltd., 327 ITR 543 (Del.); ii) Ruchi Strips and Alloys Ltd. v/s DCIT, ITA no.6940/ Mum./2008 dated 21st January 2011; and iii) BSEL Infrastructures Realty Ltd. v/s ACI .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

is further evident that the disallowances on the basis of which penalty under section 271(1)(c) was imposed related to determination of income under the normal provisions of the Act. Therefore, they have no relevance at all as far as computation of book profit under section 115JB and levy of tax thereon. Therefore, the decision of the Hon'ble Delhi High Court in Nalwa Sons Investments Ltd. (supra) squarely applies to the facts of the present case. In fact, the issue in dispute has been set .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

attracted with reference to additions / disallowance made under normal provisions. For better clarity, the CBDT circular referred to above is extracted hereunder:- Section 115JB of the Act is a special provision for levy of Minimum Alternate Tax on Companies, inserted by Finance Act 2000 with effect from 1-4-2001. 2. Under clause (iii) of sub-section (1) of section 271 of the Act, penalty for concealment of income or furnishing inaccurate particulars of income is determined based on the 'amo .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

, held that when the tax payable on income computed under normal procedure is less than the tax payable under the deeming provisions of Section 11 5JB of the Act, then penalty under section 271(1 )(c) of the Act could not be imposed with reference to additions /disallowances made under normal provisions. The judgment has attained finality. 4. Subsequently, the provisions of Explanation 4 to sub-section (1) of section 271 of the Act have been substituted by Finance Act, 2015, which provide for th .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 



|| Home || Acts and Rules || Notifications || Circulars || Schedules || Tariff || Forms || Case Laws || Manuals ||

|| About us || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members || Site Map ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version